Post
Topic
Board Economics
Merits 3 from 2 users
Re: The EU takes 9 more jurisdictions out of the Tax Heaven list
by
Poker Player
on 08/10/2021, 09:36:20 UTC
⭐ Merited by stompix (2) ,Sterbens (1)
I have read the article and what you say several times because it seems to me that you have made mistakes. I think you were a bit blinded by the Pandora Papers and that made you write like that.

For starters they are not "tax heavens" they are "tax havens". It is a semantic but essential difference.

As the fumes from the Pandora Papers are still in the air, the EU has seen fit to withdraw from the Tax Heavens list countries such as Samoa, Fiji, Trinidad y Tobago,...

No. I have read it several times. I understand the article to say that those are still considered tax havens:

"The EU tax-haven list, created in 2017 to clamp down on tax avoidance and tax evasion, now has nine jurisdictions blacklisted as “non-cooperative”: American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands, and Vanuatu."


Particularly interesting the case of Anguila, with a corporate tax of 0%.

This case you mention would be one of the three that have been removed from the list:

"EU finance ministers have removed Anguilla, Dominica and Seychelles from the bloc’s blacklist of tax havens,"


I don't have much confidence in EU bureaucrats, but tax havens are not just low tax countries. Low tax countries that used to be considered tax havens are no longer on the list because the authorities agreed to cooperate against fraud and money laundering. In other words, to be a tax haven it is not only necessary to have low taxes, it is also necessary to have an opacity of information in the face of financial information requests from other countries.


As a tax paying citizen I am very disappointed with the minimal requisites that the EU is requiring from these countries. A global tax of 15% should be required to be considered for business as an equal.

A flat income tax of 15% should be required also to encourage progress, effort, savings, investment and a long etcetera, but I think we are not going to agree.

How about a zero tax?

In my case, I like low taxes, but not to that extent. A company with 0% corporate tax should have taxes on the other hand even to finance the minimum. Unless you are an ancap like Theymos and think society would work by eliminating government altogether.

I think ancap and 0 taxes can work in small societies, but not in modern societies with mega corporations which after all are centralized entities like states. I think Adam Smith's invisible hand works best in small societies with small businesses.

As I said before, businesses and corporations are not poeple, they don't spend millions on mansions, cars, and hookers...

I'm surprised you say that, the really rich have nothing to their name and the Ferrari, houses and luxuries they put in the name of the LLC or equivalent. As far as I remember I have heard two say that, Kiyosaky and Dave Ramsey and I don't think they are the only ones by a long shot.

I assume you are referring to companies like JNJ or those in the S&P 500 but they are not the only type of companies out there.